Monday, September 20, 2010

Goodbye Christine Romer, for Now

Christine Romer resigned last month from the Obama administration and went back to UC Berkeley to teach.Dr. Romer was President Obama’s first Chair of the Council of Economic Advisors.In her tenure, she co-authored a paper with Jared Bernstein, Vice-President Biden’s chief economic advisor, in which they predicted that the effects of the recent stimulus package would contribute a 1.6% growth rate to the expansion of the economy.Further, the growth rate would be stable for the next several years.Combined with the economy’s own natural cyclical capabilities to grow we should have a GDP growth rate much higher than the current 1.6%.Growth doesn’t all come from stimulus.

In a paper by Cogan, Cwik, Taylor, and Weiland titled “New Keynesian versus Old Keynesian Government Spending Multipliers”, Romer’s and Bernstein’s conclusions are challenged with predictions that the stimulus package would contribute only .8% growth to the economy in 2010, .5% in 2011, .3% in 2012, and .2% in 2013.To me, it was unusual in how it directly and strongly challenged the Rome-Bernstein conclusions.

Dr. Romer has one thing for which I give her credit and that is the good sense to choose this time to quit.It should be clear that she did not create the stimulus legislation.That was Congress.She did estimate its effects. She has been replaced by Austan Goolsbie, an economist who was, at least one time in his life, a stand-up comedian.

About Me

Who am I? I am a guy who has had a number of jobs in both the private and public sectors, most in finance, planning, and management. My educational background includes studies in public administration, public policy, finance and accounting, computer systems, mathematics, and recently, economics. I grew up as a conservative Republican who loved Nixon up until he broke my heart. I have also liked some Democrats such as John Kennedy and Birch Baye. This is my first attempt ever at trying to be public with my opinion. I would prefer spending my time taking classes, learning new things, enjoying close relationships, and looking forward. But if more of us from the old middle would be more vocal, perhaps our politics will change. My educational background includes a PhD in Public Administration with emphases in public finance and public policy, a Masters of Accounting, and other degrees. My experience includes project management positions with a defense company, a computer company, and a transportation company. I have also taught at several universities and colleges in two states.